Ms. Lincoln paid $14,340 of medical expenses this year that were not reimbursed by her insurance provider. Compute the after-tax cost of these expenses assuming that a. Ms. Lincoln doesn’t itemize deductions on her Form 1040. b. Ms. Lincoln itemizes deductions, her AGI is $64,400, and her marginal tax rate is 24 percent. c. Ms. Lincoln itemizes deductions, her AGI is $209,200, and her marginal tax rate is 32 percent.
Ms. Lincoln paid $14,340 of medical expenses this year that were not reimbursed by her insurance provider. Compute the after-tax cost of these expenses assuming that a. Ms. Lincoln doesn’t itemize deductions on her Form 1040. b. Ms. Lincoln itemizes deductions, her AGI is $64,400, and her marginal tax rate is 24 percent. c. Ms. Lincoln itemizes deductions, her AGI is $209,200, and her marginal tax rate is 32 percent.
Chapter10: Deduct Ions And Losses: Certain Itemized Deduct Ions
Section: Chapter Questions
Problem 2BCRQ
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Question
Ms. Lincoln paid $14,340 of medical expenses this year that were not reimbursed by her insurance provider. Compute the after-tax cost of these expenses assuming that
a. Ms. Lincoln doesn’t itemize deductions on her Form 1040.
b. Ms. Lincoln itemizes deductions, her AGI is $64,400, and her marginal tax rate is 24 percent.
c. Ms. Lincoln itemizes deductions, her AGI is $209,200, and her marginal tax rate is 32 percent.
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